Advanced Drainage Systems, Inc. · NYSE:WMS
Advanced Drainage Systems — Q3 FY2020 Earnings Presentation
18 slides from Advanced Drainage Systems's earnings presentation, Feb 6, 2020
Slide 1: Advanced Drainage Systems Q3 Fiscal 2020 Financial Results
Advanced Drainage Systems Q3 Fiscal 2020 Financial Results
Slide 2: Management Presenters
Management Presenters Scott Barbour President and Chief Executive Officer Scott Cottrill Executive Vice President, Chief Financial Officer Mike Higgins Vice President, Corporate Strategy & Investor Relations
Slide 3: Forward Looking Statements and Non-GAAP Financial Metrics
Forward Looking Statements and Non-GAAP Financial Metrics Certain statements in this presentation may be deemed to be forward-looking statements. These statements are not historical facts but rather are based on the Company’s current expectations, estimates and projections regarding the Company’s bu
Slide 4: Q3 Fiscal 2020 Revenue Highlights
Q3 Fiscal 2020 Revenue Highlights Domestic construction market sales grew 6% despite record rainfall in the quarter, in led by non-residential and residential construction. 1 Consolidated net sales grew 24%, driven by 5% organic growth and contribution from Infiltrator Water Technologies. 2 3 4 Orga
Slide 5: Q3 Fiscal 2020 Profitability and Cash Flow Highlights
Q3 Fiscal 2020 Profitability and Cash Flow Highlights Domestic construction market sales grew 6% despite record rainfall in the quarter, in led by non-residential and residential construction. 5 Consolidated Adjusted EBITDA increased 89%, driven by 36% increase in the legacy ADS business and contrib
Slide 6: Q3 Fiscal 2020 Financial Performance
Q3 Fiscal 2020 Financial Performance +800 bps Organic* +440 bps (USD, in millions) +23.7% Organic* +5.4% By Application + Pipe +4% + Allied +8% Domestic Markets + Construction +4% + Non-Residential +3% + Residential +5% + Infrastructure +4% + Agriculture +29% Organic* Revenue Growth By Geography + D
Slide 7: Free Cash Flow
Free Cash Flow FY 2020 FY 2019 ∆ Consolidated Adjusted EBITDA $290 $195 $95 Working capital(2) 68 (2) 70 Cash tax (9) (27) 18 Cash interest (24) (12) (12) Transaction costs(3) (21) ‒ (21) Other (6) (5) (1) Consolidated Cash flow from operations 296 148 148 Capital expenditures (46) (31) (15) Consoli
Slide 8: Capital Structure
Capital Structure (in millions) December 31, 2019 March 31, 2019 Interest Term Loan Facility (9/2019) $ 650 $ ‒ L + 2.250% Senior Notes (9/2019) 350 ‒ 5.000% Credit Agreement (2017) ‒ 134 L + 1.125% Senior Notes (2017) ‒ 100 3.660% Equipment financing 2 2 2.746% Total debt $ 1,002 $ 237 Finance leas
Slide 9: Fiscal 2020 results expected to be in the upper end of the guidance range
Fiscal 2020 results expected to be in the upper end of the guidance range Key Metric FY 2019 FY 2020 Y-o-Y Change Net Sales (in Millions) $1,385 $1,600 - $1,650 Up 16% to 19% Adj. EBITDA (in Millions) $232 $325 - $345 Up 40% to 49% Adj. EBITDA Margin 16.8% 20.3% - 20.9% +350 to +410 basis points Fis
Slide 10: Q&A Session
Q&A Session
Slide 11: Closing Remarks
Closing Remarks Domestic construction market sales grew 6% despite record rainfall in the quarter, in led by non-residential and residential construction. Positioned for continued above-market growth in fiscal 2020 due to material conversion strategy and strong growth of key products. Acquisition of
Slide 12: Appendix
Appendix
Slide 13: Q3 Fiscal 2020 Infiltrator Water Technologies Results
Q3 Fiscal 2020 Infiltrator Water Technologies Results Infiltrator Water Technologies results are performing above previous expectations Infiltrator Water Technologies acquisition closed July 31, 2019. (1) Includes $13.5 million and $26.7 million of intersegment net sales for the three and nine month
Slide 14: Year-to-Date Fiscal 2020 Financial Performance
Year-to-Date Fiscal 2020 Financial Performance +470 bps Organic* +260 bps (USD, in millions) +17.1% Organic* +7.2% $195.1 $38.6 $34.7 ($16.4) $51.6 $289.8 Revenue Adj. EBITDA *Organic results represent the legacy ADS business and exclude Infiltrator Water Technologies results. ($11.8) $1,303 $1,113
Slide 15: Special Dividend / ESOP
Special Dividend / ESOP Special Dividend $1.00 Special Dividend paid on June 14, 2019 to all shareholders of record on June 3, 2019 $75M aggregate payment $58M to Common Shareholders $17M to Preferred Shareholders (ESOP) ESOP Background: The Company established the ESOP in 1993, funded by an existin
Slide 16: Reconciliations
Reconciliations Three Months Ended December 31, 2019 December 31, 2018 Net Sales Intersegment Net Sales Net Sales from External Customers Net Sales Intersegment Net Sales Net Sales from External Customers Net Sales Intersegment Net Sales Net Sales from External Customers Net Sales Intersegment Net S
Slide 17: Reconciliations
Reconciliations ‘Three Months Ended ‘Nine Months Ended December 31 December 31 (Amourts in thousands) 2019 2018 2019 2018 Adjusted Gross Profit Bipe s 41696 S 192768 $ 153,73 Jternatio: 201 31,131 Infrator Water Technologies 648 Allied Pre Other 31656 157,635 13.08 Dtensgnent Eiiatnn 1859) z Total A
Slide 18: Reconciliations
Reconciliations (a) Includes derivative fair value adjustments, foreign currency transaction (gains) losses, the proportional share of interest, income taxes, depreciation and amortization related to the South American Joint Venture, which are accounted for under the equity method of accounting, con
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